TOKYO--Sharp Corp. (6753.TO) said Monday that a second equity investment by Qualcomm Inc.
QCOM, -0.43%
will not take place by the end of March as planned, since the two sides have yet to agree terms in ongoing talks.

The delay in securing a second round of capital from Qualcomm is another setback for the struggling Japanese electronics maker's continued efforts to bolster its balance sheet. Sharp needs capital to assure its lenders that its finances are on a stable footing after two years of record losses that have nearly crippled the once-proud electronics firm.

Sharp announced on Dec. 4 that it had reached an agreement for an equity investment of up to Y9.9 billion from Qualcomm in a deal envisaging cooperation on displays using a new Sharp liquid-crystal-display technology and Qualcomm's emerging low-power-display technology.

The first round of the new share issuance was completed at the end of December, and was worth Y4.9 billion. Sharp had announced that the second round would take place by the end of the current fiscal year, but said Monday that it is no longer possible to make the March 29 deadline.

Sharp spokeswoman Miyuki Nakayama said the two companies pushed back the deadline because they have failed to meet one of the conditions of the original agreement calling for the two sides to agree on a business plans for the new screen technology the companies are working on. The delay, she said, is not tied to Sharp's efforts to raise capital.

Official comment from Qualcomm was not immediately available.

In a sign of Sharp's urgency in shoring up its finances, the company turned to rival Samsung Electronics Co. (005930.SE) a lifeline earlier this month. The South Korean electronics conglomerate agreed to invest Y10.4 billion for about a 3% stake in Sharp.

Sharp has been scrambling for capital investments from partners after its agreement with Taiwan's Hon Hai Precision Industry Co. (2317.TW) for a Y66.9 billion, or 9.9%, stake in the company fell through after Sharp's share price plunged.

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